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Those expensive Apple Watch Edition models could be a game changer

Those expensive Apple Watch Edition models could be a game changer

That iThingy You're Wearing
February 18, 2015

Earlier this week, The Wall Street Journal reported that Apple suppliers in Asia are expected to make between 5 million and 6 million Apple Watches during the first quarter of the device’s release. Now, we have a better idea what those numbers, when translated into sales, could mean for the company, courtesy of John Gruber.

Sources tell The Wall Street Journal that half of the devices produced in the first quarter will be the entry-level Apple Watch Sports model, with one-third being the mid-tier Apple Watch model. These are the watches that feature a stainless-steel case and a sapphire crystal display.One million of the expensive Apple Watch Edition models are supposed to make up the rest.

According to the Daring Fireball founder, selling 1 million Edition units every three months would translate into $5 billion in revenue per quarter. This assumes that these watches are priced at $5,000.

In doing so:

So as a business — if the WSJ’s sources are correct, and if Apple is correctly predicting demand — Apple Watch revenue will be dominated by the gold Edition units, accounting for double or more of the revenue from all the other models combined. The Edition models would thus do to the Apple Watch lineup as a whole what the iPhone, iPad, and Macintosh do to the entire phone, tablet, and PC industries, respectively: achieve a decided majority of the profits with a decided minority of the unit sales.

Some amazing numbers, no?

The Apple Watch is expected to arrive in stores in April.